Frizell Company has the following comparative balance sheet data

Frizell Company

Balance Sheets

December 31

2017 2016

Cash $15,000 $30,000

Accounts receivable (net) 70,000 60,000

Inventory 60,000 50,000

Plant assets (net) 200,000 180,000

$345,000 $320,000

Accounts payable $50,000 $60,000

Mortgage payable (6%) 100,000 100,000

Common stock, $10 par 140,000 120,000

Retained earnings 55,000 40,000

$345,000 $320,000

Additional information for 2017:

  1. Net Income was $25,000
  2. 2. Sales on account were $410,000. Sales returns and allowances were $20,000
  3. Cost of goods sold was $ 198,000

Instrutions

Compute the following ratios at December 31, 2017

(a) Current ratio (c) Accounts receivable turnover

(b) Acid- test ration (d) Inventory turnover